Netflix reported unexpected growth that surprised analysts and company executives alike. The company reported that 2 million subscribers joined the service, and that many subscribers participated in the video streaming service. Are U.S. consumers cocooning?
Netflix Inc's share price jumped about 8 percent on Monday after the top U.S. online DVD rental company posted unexpectedly rosy quarterly results propelled by growth in its Internet video streaming service.
The company also forecast a revenue range for full-year 2009 above the average of Wall Street estimates and said it sees strong momentum so far this quarter.
“It's very clear that streaming is energizing our growth," Netflix Chief Executive Reed Hastings said on a conference call with analysts.
A record-setting 2 million gross subscriber additions drove down Netflix's average marketing costs to a near-record low and surprised executives who in October predicted slower growth.
Netflix executives also said no data, such as increased DVD usage, showed that the U.S. recession was boosting growth as “cocooning" consumers turned to home entertainment.
Netflix Inc's share price jumped about 8 percent on Monday after the top U.S. online DVD rental company posted unexpectedly rosy quarterly results propelled by growth in its Internet video streaming service.
The company also forecast a revenue range for full-year 2009 above the average of Wall Street estimates and said it sees strong momentum so far this quarter.
“It's very clear that streaming is energizing our growth," Netflix Chief Executive Reed Hastings said on a conference call with analysts.
A record-setting 2 million gross subscriber additions drove down Netflix's average marketing costs to a near-record low and surprised executives who in October predicted slower growth.
Netflix executives also said no data, such as increased DVD usage, showed that the U.S. recession was boosting growth as “cocooning" consumers turned to home entertainment.
